Week Ahead Industry Previews: Third Week of Jan 2024

  • The Goerli testnet will undergo the Dencun upgrade on January 17, and Goerli will be deprecated after the upgrade.
  • The Coinbase judgment motion with the U.S. SEC’s oral arguments is scheduled for January 17.
  • Metis will initiate community testing on January 15.
  • The World Economic Forum takes place in Davos, Switzerland.
  • Approximately $140 million worth of INJ is set to unlock on January 21.

Key Events

Ethereum developers are scheduled to carry out the Dencun upgrade on the Goerli testnet on January 17, followed by runs on Sepolia on January 31, Holesky testnet on February 7, and eventually on the mainnet. The Goerli testnet will be deprecated after the Dencun upgrade on January 17.

The oral arguments for the judgment motion between Coinbase and the U.S. Securities and Exchange Commission (SEC) are set for January 17. Previously, the SEC accused Coinbase of selling 13 cryptocurrencies, violating national securities laws. The SEC argues that these tokens constitute unregistered securities and that Coinbase failed to register its lending program. Coinbase contends that the SEC’s action is overreaching its authority, and the company went public with its core business, exceeding its influence without congressional authorization.

Cryptocurrency lawyer James A. Murphy, also known as MetaLawMan, expressed on X that the likely outcome could be a complete victory for the SEC. The judge may dismiss Coinbase’s motion because the SEC only needs to prove that their claims are “reasonable.” The chances of Coinbase winning are slimmer, and a possible outcome might be the judge approving the motion regarding the tokens but rejecting the one related to the lending service.

Ripple Labs has submitted an extension request to Judge Sarah Netburn in the Southern District of New York, asking for a postponement to respond to the SEC’s mandatory motion on January 11. The original response date for Ripple was January 17, and the new requested date is January 19.

Project Updates

This week, there are several noteworthy project developments, primarily focusing on project testing and airdrop methods:

  • Aleo Network is set to conduct its second stress test on January 15, lasting for two weeks.
  • Metis initiated community testing on January 15.
  • ZKFair will commence Gas fee dividends starting January 15.
  • T2T2 is conducting the second round of airdrop on January 15.
  • The IBC-based PoS Layer1 privacy blockchain Namada testnet started running on January 15.
  • Bounce Brand will release the BOUNCE token on January 16 at 00:00.
  • Paxos plans to expand its stablecoin product to the Solana blockchain.

Upcoming Events

The World Economic Forum is scheduled to take place from January 15 to 19, 2024, in Davos, Switzerland. According to reports from the Financial Times, several crypto companies are expected to be present, including Ripple, Circle, Coinbase, Stellar, and Hedera.

Token Unlocks

According to Token Unlocks data, several tokens, including FLOW, APE, EUL, 1INCH, AXS, NYM, and INJ, are scheduled for a one-time unlock between January 15 and January 21.

  • Injective (INJ) tokens are set to unlock on January 21 at 08:00, releasing 3.67 million tokens (approximately $140 million), accounting for 4.33% of the circulating supply.
  • Axie Infinity (AXS) tokens are set to unlock on January 18 at 21:10, releasing 3.43 million tokens (approximately $28.06 million), accounting for 2.53% of the circulating supply.
  • ApeCoin (APE) tokens are set to unlock on January 17 at 08:00, releasing 15.6 million tokens (approximately $22.78 million), accounting for 4.23% of the circulating supply.

Governance Voting

Arbitrum has initiated the “Long-Term Incentive Pilot Program” proposal vote, with voting scheduled to conclude on January 17. This proposal aims to distribute 25 to 45 million ARB tokens to test new incentive designs and prepare for the long-term plan, which will distribute ARB to the Arbitrum ecosystem protocols over a 12-week period.

The AirDAO council has approved the proposal to “Use Profits to Buy and Burn Tokens.” The community will be able to track earnings, and it has been confirmed that all generated profits will be used to buy and burn AMB tokens. The current vote for the purchase ratio is ongoing, with options of 0%, 25%, 50%, 75%, and 100%. The AirDAO council will allocate half of the selected ratio to Aave and the other half to Compound. The voting is set to conclude on January 16 at 12:00 (Beijing time).